ErisX Receives CFTC Approval for Physical Bitcoin Futures

Wilfred Michael 

Wilfred Michael

News reporter

02 July 2019,
ErisX Receives CFTC Approval for Physical Bitcoin Futures

For the second time in less than a week, the United States Commodity Futures Trading Commission (CFTC) has approved an application for a crypto derivatives startup to offer physically delivered Bitcoin futures.

As per a Monday press release by the regulators, ErisX has received a derivative clearing organization license (DCO), which would now augment the designated contract market (DCM) license which the startup already held.

Armed with the required regulatory documents, ErisX can now offer crypto-related futures products, including those that can be settled in real cryptocurrencies instead of cash. ErisX is backed by leading U.S brokerage firm, TD Ameritrade.

The startup, however, has no provided a definite timeline regarding when it intends to use the newly acquired license the launch a physical Bitcoin futures product. 

The only hint provided is that the product would arrive “later this year,” while CEO Thomas Chippas focused on what sets their offering apart from other competitors vying to enter the derivatives market.

He acknowledged in a statement that because ErisX “divided the trading and settlement functions using traditional DCM (exchange) and DCO (clearing) models,” any product launched would satisfy the needs of institutional investors.

Meanwhile, as we noted earlier, ErisX is now the second startup within the space of a week, to receive the requisite regulatory approval to offer physically delivered cryptocurrency futures products.

On June 25, we reported that LedgerX received similar approval from the U.S CFTC. 

Other startups in line to launch similar futures products include Intercontinental Exchange (ICE) backed crypto trading venue, Bakkt, and SeedCX.

However, Bakkt as mentioned last month, is on track to test its futures product this July, an achievement that would make it the first to offer physically delivered Bitcoin futures in the U.S.


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